Item 05 - Discussion on HOT leftovers transparency request for potential emergency funding.pdf — original pdf

Backup

6/16/25, 2:58 PM Mail - Varela, Jesus - Outlook Outlook Fw: Request to add these questions to the agenda as an item called "HOT leftovers transparency -- > emergency funding?" From Anderson, Sharron - BC <BC-Sharron.Anderson@austintexas.gov> Date Mon 6/16/2025 2:48 PM To Cc Varela, Jesus <Jesus.Varela@austintexas.gov> Houston, Gina - BC <BC-Gina.Houston@austintexas.gov>; Means, Angela <Angela.Means@austintexas.gov> Hi, Jesús. Please add the email below, a seconded request for specific information in Agenda Item number 5, to the official back-up for the meeting. Thank you, Sharron From: Anderson, Sharron - BC Sent: Friday, June 6, 2025 5:48 PM To: Schmidt, Matthew <Matt.Schmidt@austintexas.gov>; Shamaly, Erica <Erica.Shamaly@austintexas.gov>; Varela, Jesus <Jesus.Varela@austintexas.gov>; Pantel, Jesus <Jesus.Pantel@austintexas.gov>; Bobby Garza <bgarza@thelongcenter.org> Cc: Houston, Gina - BC <BC-Gina.Houston@austintexas.gov>; Duchen, Marc <marc.duchen@austintexas.gov>; Grant, William <william.grant@austintexas.gov>; Falgoust, Neal <Neal.Falgoust@austintexas.gov> Subject: Request to add these questions to the agenda as an item called "HOT leftovers transparency --> emergency funding?" Hello, Jesús. Please add this item to the agenda for the Arts Commission meeting on June 16, 2025: "HOT leftovers transparency request for potential emergency funding." I've cced Gina Houston here, who expressed an interest in providing a second. The following questions are posed here to Matthew Schmidt, Erica Shamaly, Jesús Pantel, and third- party Long Center Chief Program Officer, Bobby Garza. NOTE: If thorough answers to these questions require Long Center staff or any other City employees (such as Legal) to appear at the Arts Commission meeting on June 16, we respectfully request that those arrangements be made by City Staff early in the coming week — so that there are no questions on this list for which the answer will be, “We don't know — the Long Center handles that.” We encourage Long Center staff to attend this Arts Commission meeting to ensure the most thorough discussion. We request that the answers to these questions be included in the backup for the June 16 meeting, which means they should be sent in a reply to this thread (ccing Jesús Varela) by Wednesday, June 11. (Please confirm that this timing is correct for inclusion in backup, Jesús.) Thank you so much, everyone. 1. How many total HOT-funded grants (ie, Arts/Culture [Nexus, Elevate, Thrive], Live Music, Heritage, CSAP) from the 2022/2023 cycle (which should have been closed out in calendar year 2024) are incomplete as of today (no final report/last 10% went unpaid)? https://outlook.office365.com/mail/inbox/id/AAQkAGQzZTAxYTc4LTQ4NmQtNDM0Yy05NTNkLTk0ZjJlNzRmNTAzMAAQALpnN7bktEhBjdewY3%2B3p… 1/3   6/16/25, 2:58 PM Mail - Varela, Jesus - Outlook We are asking for a complete tally of unsatisfied HOT-funded grant contracts, not only Arts & Culture ones. Please also divide the total into each type of grant so we can see the categories that have greater and lesser degrees of contract breaches. Total number of unsatisfied contracts/unpaid 10%: _____ Number of Elevate grants with unsatisfied contracts/unpaid 10%: _____ Number of Nexus grants with unsatisfied contracts/unpaid 10%: _____ Number of Thrive grants from 2022 (2023-2024 usage) with unsatisfied contracts/unpaid 10%: _____ Number of Live Music grants with unsatisfied contracts/unpaid 10%: _____ Number of Heritage grants with unsatisfied contracts/unpaid 10%: _____ Number of CSAP grants with unsatisfied contracts/unpaid 10%: _____ 2. Leftovers: Those _____ total unsatisfied contracts equal how many total dollars of unclaimed HOT funds (i.e., the 10% left in the funding buckets by all HOT grantees who abandoned their final reports in breach of contract)? $ ___________ 3. Please clarify where these leftover dollars are located? The City should still have them as they are not released to the Long Center until final reports are approved, is that right? If the City is in possession of the pre-allocated funds, could the total be reallocated into an emergency fund for arts and culture nonprofits caught off guard by NEA grant cancellations? (This may be a question for Legal, Neal?) 4. How is the City setting about to retrieve refunds for the 90% furnished to grantees who did not complete their contracts? What are the consequences for not completing the final report? If the grantees with delinquent final reports had been under fiscal sponsorship, the fiscal sponsor would be on the hook for repaying the 90%, correct? 5. Were any of the grantees who did not file a final report (for the 2023 cycle) granted funds again in the 2024 or 2025 cycle? If so, please provide a complete list of those grantees. Your cooperation around these questions is appreciated. They are asked in the spirit of transparency. ACME is working to restore trust in the process with its through public engagement, but clarifying recent lapses in accountability can help set future policies to prevent such lapses from happening beyond the Creative Reset. The leftover dollars should be utilized where they are needed most. Given the City's budget cliff, it’s understandable that last month's recommendation from the Arts Commission to the City Council to establish a "cancelled-NEA-grantee" emergency fund was ignored. However, if unused dollars (from an unfortunate lack of contract accountability) can be applied to this worthy purpose, it's worth discussing how those dollars can be seized and utilized appropriately. This would ensure optimal stewardship of what's left of untracked public funds. If the full grant amounts can be recovered somehow, all the better for the organizations in need of NEA replacement funds. Though, unfortunately, since the fiscal sponsor requirement was lifted, recovery of the 90% is unlikely. This illustrates perfectly why restoring the use of properly regulated, industry-standard fiscal sponsors is important to expand the City's oversight/accountability/transparency capabilities. Thank you for helping to figure out these specific questions. https://outlook.office365.com/mail/inbox/id/AAQkAGQzZTAxYTc4LTQ4NmQtNDM0Yy05NTNkLTk0ZjJlNzRmNTAzMAAQALpnN7bktEhBjdewY3%2B3p… 2/3 6/16/25, 2:58 PM Mail - Varela, Jesus - Outlook Sincerely, Sharron Anderson Arts Commissioner, D10 Phone: 212-245-5414 Sharron Anderson Boards and Commissions Scheduled Meeting Disclosure Information: Written disclosure is required by visitors when attending a scheduled meeting with a City Official regarding a municipal question for compensation on behalf of another person. 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